The following journal entry was made by your predecessor to record the annual payment on a 5%, 10-year installment note.

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JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1	Oct. 1	Interest Expense	710	178,300.00
2		Notes Payable	215	524,262.00
3		Cash	110		702,562.00

Using the information provided, compute the following amounts.

1. What was the carrying amount (book value) of the installment note before the payment on October 1?

Points:

0 / 1

2. What portion of next years payment will be interest? (Round the amount to the nearest dollar.)